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If your company is the target of a takeover, your immediate response may be to put up your defenses to protect your small business. But first, take a minute to breathe and review the situation, offer and long-term prospects for your business. A takeover can be a sign that you have created a strong niche and a business model that a larger company finds appealing. It can allow your small business to expand beyond current geography or financial limitations. It is important to remember to maintain your current business while focusing on the acquisition challenge.

Keep Records Current

Maintaining accurate records is essential during a takeover process. Whether you are trying to fight the takeover or will proceed with a cordial acquisition, up-to-date accounting information, production levels, sales prospects and inventory status helps ensure you can quickly provide any data or analysis required. Due diligence processes run smoother if records are current and reflect the actual company status. Current records may also decrease any costs associated with audits or other legal reviews required during the takeover.

Define Roles

Establishing roles for all executives and business participants is critical during a takeover. Determining who will perform tasks, reviews, analysis and coordination ensures a seamless process that minimizes the negative impact on ongoing business processes. Roles for post-takeover should also be defined clearly so everyone is aware of who will remain with the company permanently, who will continue in an advisory capacity and who will leave the company immediately. Include a knowledge transfer stage for all key employees and processes.

Proper Value

Ensure your financial stake in your company is properly valued. The valuation process should take into account initial investments of land, equipment, cash and intellectual capital. Additionally, the process must assess the current value of physical capital, cash and inventory and the value of future earnings potential. Each step of the valuation process must be accurate and reflect a fair and favorable view of your company.

Find Professional Assistance

Legal, auditing and business consulting services can offer valuable assistance during a takeover. Experienced professionals can help you get the most money for your company or help you determine methods of fighting the process. Opt for professionals who have significant experience working with companies in your industry and with takeovers.